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Classic Geometric Patterns and Narrow Range Setups
- Thread starter inandlong
- Start date
Inandlong,
I could give away all the "secrets" that I have learned over the years, and teach all of the edges that I have gained, and most folks out there would still lose money.
Bear in mind that I am not criticizing, because I am far from a super trader, or whatever- but I am now learning that the ultimate secret is discipline.
Others on this site have listed many of the keys to trading well, but most traders do not really internalize them, nor do they develop the discipline to make them work.
I am a trader, and will always be a trader, no matter what. It is what drives me, and fires me up each day. I work full time, but am a trader none the less. For many of us, it is what we do, and who we are. For the others, it is a hobby.
Please don't think that I am being a jerk about this, but it all comes down to commitment and discipline.
Regards,
Kevin
I could give away all the "secrets" that I have learned over the years, and teach all of the edges that I have gained, and most folks out there would still lose money.
Bear in mind that I am not criticizing, because I am far from a super trader, or whatever- but I am now learning that the ultimate secret is discipline.
Others on this site have listed many of the keys to trading well, but most traders do not really internalize them, nor do they develop the discipline to make them work.
I am a trader, and will always be a trader, no matter what. It is what drives me, and fires me up each day. I work full time, but am a trader none the less. For many of us, it is what we do, and who we are. For the others, it is a hobby.
Please don't think that I am being a jerk about this, but it all comes down to commitment and discipline.
Regards,
Kevin
Quote from ksthomsen:
The thread is starting to really hum- this is neat. I aso have NTMD on my list for tomorrow, along with GPRO, CTSH, and AMX. These are all NR7's, with CTSH and AMX pulling back to support.
Good luck to all.
Regards,
Kevin
Kevin - do you only scan for NR7's, or also ID? Obviously CTSH and GPRO are NR's but not ID's. I was wondering if you have noticed any difference in performance as you traded the set-up's. Better, worse, the same?
Thanks.
I run a few scans- NR7, NR7 ID, NR4 ID, and NR7-2 (2 NR7's in a row).
There is some duplication, but right now, I am trying to get a good handle on the patterns, and why some may work better. Some elements that the scans have in common are that price needs to be above the 50 and 200 day moving averages, RSI needs to be over 50, and stock price needs to be over $5.00.
I am looking for strong stocks that are consolidating, but not too cheap. I also set minimum volume levels, so as to avoid thinly traded stocks.
One other thing I do, is to look at what price is doing other than just the narrow range bar. NR's seem to often create small flags or pennants, on are sometimes an end of a pullback to support.
As I have mentioned earlier, this is a tough market environment to try this scan in, as I cannot short. So- I am testing, and waiting for better days.
I went long TASR today with a buy stop, the move was on light volume, and I don't like the look of today's candle. See what Monday brings.
Regards,
Kevin
There is some duplication, but right now, I am trying to get a good handle on the patterns, and why some may work better. Some elements that the scans have in common are that price needs to be above the 50 and 200 day moving averages, RSI needs to be over 50, and stock price needs to be over $5.00.
I am looking for strong stocks that are consolidating, but not too cheap. I also set minimum volume levels, so as to avoid thinly traded stocks.
One other thing I do, is to look at what price is doing other than just the narrow range bar. NR's seem to often create small flags or pennants, on are sometimes an end of a pullback to support.
As I have mentioned earlier, this is a tough market environment to try this scan in, as I cannot short. So- I am testing, and waiting for better days.
I went long TASR today with a buy stop, the move was on light volume, and I don't like the look of today's candle. See what Monday brings.
Regards,
Kevin
Looking at buying AMMD- nice NR7 ID, forming a small pennant.
I'm curious- is anyone applying indicators or other tools to the NR price patterns, or just looking at price and volume?
I'm trying to find some ways of selecting the best of the best. LBR applied historical volitility to the narrow range bars in Streetsmarts, but I am having a little trouble finding it. I may be able to create it as a custom indicator in TC 2000, but have not tried yet.
Kevin
I'm curious- is anyone applying indicators or other tools to the NR price patterns, or just looking at price and volume?
I'm trying to find some ways of selecting the best of the best. LBR applied historical volitility to the narrow range bars in Streetsmarts, but I am having a little trouble finding it. I may be able to create it as a custom indicator in TC 2000, but have not tried yet.
Kevin
"I'm curious- is anyone applying indicators or other tools to the NR price patterns, or just looking at price and volume?"
ks, i'm adding some things into my analysis....
1) did the stock close in the high/low of its trading range....look at RIMM on 9/22...dropped a point on NR7 failure inside first 30 minutes of trading....RIMM in NR7 today, closing on lower end of range friday
2) INSP....look at gap patterns at EOD on 9/21, and selloff thereafter...looks like IDNR4
in general, i tend to look for stocks that are overextended near term, coming up with NR7's and its affiliates....check out NAVR last week....
ks, i'm adding some things into my analysis....
1) did the stock close in the high/low of its trading range....look at RIMM on 9/22...dropped a point on NR7 failure inside first 30 minutes of trading....RIMM in NR7 today, closing on lower end of range friday
2) INSP....look at gap patterns at EOD on 9/21, and selloff thereafter...looks like IDNR4
in general, i tend to look for stocks that are overextended near term, coming up with NR7's and its affiliates....check out NAVR last week....
Quote from ksthomsen:
I'm trying to find some ways of selecting the best of the best. LBR applied historical volitility to the narrow range bars in Streetsmarts, but I am having a little trouble finding it. I may be able to create it as a custom indicator in TC 2000 . . .
i believe the hist volatility stuff came from Connors, but yes, same book
the book describes using a 6/100 ratio of 50% or less, a sheet i picked up somewhere along the line details a take-off on that. called the T-N-T pattern, combines an NR7 day and a 4/100 ratio of less than 40%, occurs less often, but the market is even more contracted, so the explosive potential is greater